Idaho Independent Bank of Coeur d’Alene is selling to Montana company

Idaho Independent Bank of Coeur d’Alene will be purchased by the Montana holding company that recently bought Inland Northwest Bank.

First Interstate BancSystem Inc. also will acquire Community 1st Bank of Post Falls. The sales were announced Thursday afternoon.

The local banks will merge into First Interstate Bank, a wholly-owned subsidiary of First Interstate BancSystem.

First Interstate will buy Idaho Independent Bank in a stock sale valued at $181.3 million. Founded in 1993, the community bank has 11 locations in Idaho.

“We are excited to join the First Interstate team and look forward to the opportunities and benefits this combination will bring to our clients, employees, and shareholders,” Jack Gustavel, IIB’s executive chairman and founder, said in a news release.

Community 1st Bank’s stock acquisition is valued at $21.5 million. The community bank has three branches.

The separate sales are expected to be final in the first half of 2019, subject to approval by each bank’s shareholders and regulators.

First Interstate Bank is headquartered in Billings. It has more than 120 locations in Idaho, Montana, Oregon, South Dakota, Washington and Wyoming.

Inland Northwest Bank was acquired by First Interstate in August. INB’s 20 locations in Washington, Idaho and Oregon will officially open their doors as First Interstate Bank on Nov. 13.